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Old 12-11-2005, 06:17 PM   #1 (permalink)
wanttobetan
 
Join Date: Dec 9 2005
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What's hiding? Worth buying?

Hi, I'm looking into buying an existing tanning salon in my area. The asking price is $58K for a small salon with only 4 beds (all sundash-2 competition 226 and 2 endurance 424), no room for expansion unless you could lease the space next door and add on, which may be possible soon. Anyway, when I s**** with the owner on the phone she told me that her gross sales the past three years (that's how long it's been open) has been roughly $75K/year and her take home net is $45K with her running it most of the time and only 2-3 part-timers for nights and weekends. When she gave me a print out on her financials, she lists only about $38K gross each year and roughly $16-$18K per year in actual net profit. I'm going to call her tomorrow to see if she can explain but thought I'd ask you guys what you think? She told me that if I and my teen daughter run it most the time I should be able to net about $60K back in pocket. She admits she does no advertizing other than a one time school newspaper ad around prom time so I know I could increase sales if I got some advertizing going. There are no other salons within 6 miles. Is it worth me spending the money? Thanks for the advice!
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